Global investors acquire 10-per cent stake in Core Projects

Mumbai: Three international investment firms have acquired a 10-per cent stake in Mumbai-based Core Projects and Technologies Ltd, after converting their foreign currency convertible bonds (FCCB) into equity.

Morgan Stanley has taken a 4.03 per cent stake, Grants Investments (an investment arm of Goldman Sachs) a 3.46 per cent stake, and Deutsche Bank a 2.59 per cent share, in the education major. The 10-per cent acquisition has cost the three majors nearly Rs40 crore.

Core Projects plans to acquire two US-based firms for nearly $20 million, and is also looking at acquiring a UK company. The company collected about Rs56 crore through the issue of 1,225 FCCBs of $10,000 each; the bonds have been listed on the Singapore Stock Exchange.

The company has a total of about Rs100 crore - both the FCCB proceeds and internal resources - which will help it in acquiring companies in the US and the UK.

According to Sanjeev Mansotra, chairman and managing director, Core, the expansion of its offshore development centre in Navi Mumbai is expected to be completed later this month.

"This together with the acquisitions will have a significantly positive impact on the revenues and profits of the company," he added.

While it is focussed on education, Core is also present in pharmaceuticals and bioscience. The company maintains management information system for government-aided schools. It recently won a Rs25-crore project from the Jharkhand government, and is negotiating with five other state governments. Core expects a revenue of $45 million in the current fiscal.